[Federal Register Volume 74, Number 133 (Tuesday, July 14, 2009)]
[Proposed Rules]
[Pages 33930-33932]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E9-16664]
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LIBRARY OF CONGRESS
Copyright Office
37 CFR Parts 201 and 202
[Docket No. 2009-4]
Electronic Registration for Deposit Account Holders
AGENCY: Copyright Office, Library of Congress.
ACTION: Notice of proposed rulemaking.
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SUMMARY: The Copyright Office is proposing to amend its regulations to
require that applications for registration paid for by deposit account
debits be submitted electronically using the
[[Page 33931]]
electronic Copyright Office (eCO) registration system (eService). The
Copyright Office is also requesting comment as to whether deposit
accounts offer sufficient efficiencies to continue offering this
service.
DATES: Written comments must be received in the Office of the General
Counsel of the Copyright Office no later than August 28, 2009.
ADDRESSES: If hand delivered by a private party, an original and five
copies of a comment or reply comment should be brought to the Library
of Congress, U.S. Copyright Office, Room LM-401, James Madison
Building, 101 Independence Ave., SE, Washington, DC 20559, between 8:30
a.m. and 5 p.m. The envelope should be addressed as follows: Office of
the General Counsel, U.S. Copyright Office.
If delivered by a commercial courier, an original and five copies
of a comment or reply comment must be delivered to the Congressional
Courier Acceptance Site (``CCAS'') located at 2nd and D Streets, NE,
Washington, DC between 8:30 a.m. and 4 p.m. The envelope should be
addressed as follows: Office of the General Counsel, U.S. Copyright
Office, LM-403, James Madison Building, 101 Independence Avenue, SE,
Washington, DC 20559. Please note that CCAS will not accept delivery by
means of overnight delivery services such as Federal Express, United
Parcel Service or DHL. If sent by mail (including overnight delivery
using U.S. Postal Service Express Mail), an original and five copies of
a comment or reply comment should be addressed to U.S. Copyright
Office, Copyright GC/I&R, P.O. Box 70400, Washington, DC 20024.
FOR FURTHER INFORMATION CONTACT: Tanya Sandros, Deputy General Counsel
or, Chris Weston, Attorney Advisor. Copyright GC/I&R, P.O. Box 70400,
Washington, DC 20024. Telephone: (202) 707-8380. Telefax: (202) 707-
8366.
SUPPLEMENTARY INFORMATION:
Deposit Account Background
The Copyright Office maintains a system of deposit accounts for
those who frequently use its services. An individual or entity may
establish a deposit account, make advance deposits into that account,
and charge copyright fees against the balance instead of sending
separate payments with applications and other requests for services.
This process has been more efficient and less expensive for both the
Office and the applicant than sending separate payments to the
Copyright Office for each application for registration or for other
services.
Proposed Change to Deposit Account Regulations
Historically, there have been no restrictions on registration
practices connected with using deposit accounts. However, the Copyright
Office is now proposing to amend its rules to require that, when an
application for registration is paid for by a deposit account debit,
the application form be submitted electronically, using the electronic
Copyright Office (eCO) registration system, known as eService. The
proposed change would ensure that basic applications for registration
will be processed more efficiently and Copyright Office administrative
costs will be reduced. The Office requests comments from the public on
this proposal.
Under current practice, when there are insufficient funds in the
deposit account being used for payment of a paper application, the
Copyright Office suspends processing of the application to notify the
account holder that replenishment of the account is needed, and places
the pending application and associated deposit copies in temporary
storage. The suspended applications, which may number 3000 or more at
any one time must be reviewed regularly by Office staff to locate those
that are newly funded and reprocess them. Thus, insufficient deposit
account funding at a minimum effectively doubles the time Office staff
must spend examining and processing an application, time that would
otherwise be more profitably spent on the current backlog of
unprocessed paper applications.
On average, three to four percent of paper applications for
registration are suspended each year due to lack of sufficient funds in
deposit accounts. In fiscal 2007, between 16,000 and 22,000
applications were put on hold for this reason, and the Office expended
a substantial amount of resources managing the suspended applications
and deposits. While the Office assesses additional fees for deposit
account overdrafts and dishonored deposit account replenishment checks,
see 37 CFR 201.3(d), these penalties do not recover the costs or solve
the fundamental problems associated with the additional handling and
the delay in processing. Consequently, the Office is proposing to
require deposit account holders to file applications for registration
via eService [including applications that require the submission of
physical copies of the deposit in order to meet the Best Edition
requirement, see 37 CFR 202.20(b)(1)], to ensure that the Office can
collect the fee at the time of filing.
eService, which was released on July 1, 2008, allows applications
for copyright registration to be filed electronically and is available
through the Copyright Office website at www.copyright.gov. An
application for registration made via eService cannot be completed
until the method of payment is verified by, for example, ensuring that
sufficient funds are present in the deposit account and payment has
been made. In contrast, paper applications must be received by the
Copyright Office, opened and processed before the validity of the
proffered method of payment can be ascertained.
Thus, the proposed change to require that all applications for
registration paid for by deposit account debits be submitted via
eService will produce significant efficiencies for the Office.
By guaranteeing payment at the time of application, the proposal
will reduce, if not eliminate, the cost and delays ascribable to
suspending applications lacking fees, storing suspended applications
and associated deposit copies, notifying deposit account holders of the
need to replenish their accounts, and retrieving and reprocessing
suspended applications after fees are received. In addition, it will
eliminate converting data from a paper application to digital
information for applications paid for by deposit account debits.
Electronic claims have been demonstrated to cost the Office only half
as much as paper claims, even those with no payment or other
complications. Among the reasons for the lower cost is the avoidance of
virtually all work associated with scanning and storing applications,
processing payments, converting data from paper to digital form, and
verifying the transcribed data prior to issuing a certificate.
Moreover, the proposed amendment is consistent with the Office's goal
of maximizing use of the electronic registration system through
eService. See, e.g., 73 FR 23990 (April 30, 2008) (Notice of proposed
rulemaking to require all group registrations to be filed
electronically).
From an applicant's perspective, using eService to submit
applications for registration would also be more efficient. The
effective date of registration is typically established more quickly
for electronic applications because, in many cases, the Copyright
Office receives all the required elements as mandated by 17 U.S.C.
410(d) - application, fee and deposit copy(ies) - in acceptable form
sooner than if sent in physical form. In addition, applications for
registration filed through eService
[[Page 33932]]
are processed faster than paper applications, in part because
processing is not delayed by the deposit account having insufficient
funds. Currently, 90% of the applications submitted through eService
are processed within six months and a third of these claims are
completed within three months.
Another advantage to applying for copyright registration via
eService is the financial benefit to the filer. The fee for filing a
basic application for registration online is $35 and the current fee
for filing a paper application is $45, which will increase to $65 on
August 1, 2009. The lower fee applies to an online submission even if
the filer must send physical deposits to fulfill the Library of
Congress's best edition requirement. Finally, there are features of the
online application that make it easier to complete the application. For
example, the eService system offers the option of a template feature
that speeds the process of completing applications by automatically
copying repeated information, such as name and address, from one
application to the next.
The key reason, however, for the proposed change is that the
eService system notifies an electronic applicant at the point of
payment when the deposit account contains insufficient funds to process
the application, making it possible for the deposit account holder to
replenish the account immediately and avoid any delay in establishing
an effective date of registration. If the applicant's deposit account
does not have sufficient funds, payment for the application in question
or replenishment of the deposit account can be accomplished with a
credit card or through Pay.gov. Pay.gov is an Internet system for
credit card payments and automatic clearing house debit transactions
(electronic checks) managed by the U.S. Treasury Department. Further
information concerning the payment options for registering claims may
be found on the Copyright Office website at: http://www.copyright.gov/eco/faq.html, under the heading, ``Paying fees in eCO.''
It is also important to note that the proposed change will not
require a deposit account holder to open a new account. In order to
begin filing electronically, he or she will only need to take the
following steps: (1) register with the eService system by creating a
user profile, (2) create an organization account in eService, and (3)
submit a request to [email protected] to link the existing deposit
account to the newly created eService organization account. The email
request should include the deposit account number and the name of the
eService organization account.
Inquiry Regarding Continued Use of Deposit Accounts
In considering the proposed rule change, questions have arisen
about the continued need for deposit accounts. Consequently, the
Copyright Office is also seeking public comment on whether it should
cease offering the use of deposit accounts altogether. In an era when
paper applications and payment via check were the norm, a separate,
simplified deposit account system presented attractive efficiencies to
frequent applicants and to the Office. However, in an era of electronic
registration and payment via corporate or other credit cards, the
administrative costs of maintaining a separate deposit account system
are no longer clearly offset by its advantages. The Office is thus
soliciting the views of current deposit account users as to whether
they continue to find value in the deposit account system, and what
impact, if any, the elimination of deposit accounts would have on their
copyright registration activities in light of the new online payment
options.
List of Subjects
37 CFR Part 201
Copyright, General provisions.
37 CFR Part 202
Preregistration and registration of claims to copyright.
Proposed Regulations
In consideration of the foregoing, the Copyright Office proposes to
amend parts 201 and 202 of 37 CFR as follows:
PART 201-GENERAL PROVISIONS
1. The authority citation for part 201 continues to read as
follows:
Authority: 17 U.S.C. 702.
2. Section 201.6(b) is revised to read as follows:
Sec. 201.6 Payment and refund of Copyright Office fees.
* * * * *
(b) Persons or firms having a considerable amount of business with
the Copyright Office may prepay copyright expenses by establishing a
Deposit Account. Pursuant to the requirements of Sec. 202.3(b)(2)(iii)
of these regulations, application forms for registration paid for by
deposit account debits must be submitted electronically using the
electronic Copyright Office (eCO) registration system (eService).
* * * * *
PART 202-REGISTRATION OF CLAIMS TO COPYRIGHT
3. The authority citation for part 202 continues to read as
follows:
Authority: 17 U.S.C. 408(f), 702.
4. Amend Sec. 202.3 as follows:
a.In paragraph (b)(2)(ii) introductory text, by removing
``Application'' in the last sentence and adding in its place ``Subject
to the mandatory electronic filing requirements for deposit account
holders in Sec. 202.3(b)(2)(iii) of these regulations, application'';
b.In paragraph (b)(2)(ii)(A), by removing ``electronically at the
Copyright Office website'' and adding in its place ``using the
electronic Copyright Office (eCO) registration system (eService) at the
official Copyright Office website'';
c.In paragraph (b)(2)(ii)(B), by removing ``electronically at the
Copyright Office website'' and adding in its place ``using the
electronic Copyright Office (eCO) registration system (eService) at the
official Copyright Office website'';
d.In paragraph (b)(2)(ii)(C), by removing ``check, money order, or
Copyright Office deposit account charge; or,'' and adding in its place
``check or money order; or,'';
e.In paragraph (b)(2)(ii)(D), by adding ``in check or money order''
after ``the required filing fee''; and
f.Add a new paragraph (b)(2)(iii).
The revisions and additions to Sec. 202.3 read as follows:
Sec. 202.3 Registration of copyright.
* * * * *
(b)* * *
(2)* * *
(iii) When the fee required by Sec. 201.3 of this section to file
a basic application for registration is paid for by a deposit account
debit, the application form shall be submitted through the electronic
Copyright Office (eCO) registration system (eService) that is available
at www.copyright.gov. If an applicant submits a paper application form
for basic registration paid for by a deposit account debit, the
Copyright Office will have the option - after processing the
application - of terminating that applicant's deposit account.
Termination will be effective 30 days after notification to the deposit
account holder.
* * * * *
Dated: July 8, 2009.
Marybeth Peters,
Register of Copyrights.
[FR Doc. E9-16664 Filed 7-13-09; 8:45 am]
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